Euro plunges towards 1.05 following Greek uncertainty

Tuesday, April 14, 2015

The euro extended declines for seventh consecutive session heading towards 1.0500 amid persistent concerns regarding Greece’s economic stability and future. The USD index continues its strong rally after testing a high yesterday at 99.990 against a basket of currencies. This morning the USD index holds strongly above 99.50 in early trade.

EUR remains under heavy pressure

EURUSD Curncy (EUR-USD X-RATE)   2015-04-14 08-55-34

In the UK, BRC retail sales jumped 3.2% y/y in March beating strongly analysts’ expectations of a 0.5% rise. The London equity benchmark index slid lower in early trade this morning, tracking losses across the other European equity markets. Market participants will be keeping an eye on the release of the UK inflation data including CPI and PPI figures in March as well as Eurozone’s industrial production data.

Asian equity markets were fairly mixed overnight as the Hang Seng index gave back recent strong gains and retreated almost 500 points (-1.76%) towards 27,500 following yesterday’s disappointing Chinese imports/exports data. The Nikkei index consolidated around 19,900, struggling for direction.  

Crude oil prices have extended gains in early trade this morning with WTI front month futures heading towards $53 per barrel and Brent front month futures climbing towards $59 per barrel. The release of the weekly API oil inventories report could provide an insight regarding the current levels of crude oil stocks, after the close of today’s trading session.  

Brent front month futures

COK5 Comdty (BRENT CRUDE FUTR  M 2015-04-14 08-57-08

  

Events for today:

 

0001

UK

Mar

BRC Retail Sales

0930

UK

Mar

CPI  &RPI

1000

EZ

Feb

Industrial Production

1330

US

Mar

Retail Sales

1330

US

Mar

PPI Final Demand

1500

US

Feb

Business Inventories

 

All times UK Local Time

 

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